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RUDE v. CAMBELL SQUARE, INC.

No. CIV75-5007.

411 F.Supp. 1040 (1976)

David O. RUDE, Administrator C.T.A. of the Estate of William S. Reese and Clarice Reese Banks v. CAMBELL SQUARE, INC., a corporation, et al.

United States District Court, D. South Dakota.

March 26, 1976.

Attorney(s) appearing for the Case

George A. Bangs, Rapid City, S. D., for plaintiff.

Richard O. Sharpe, Rapid City, S. D., for defendants.

MEMORANDUM OPINION

BOGUE, District Judge.

FACTS

This is an action brought under SEC Rule 10b-5, 17 C.F.R. § 240.106-5, alleging fraud in the purchase of stock of a closely-held corporation.

On October 1, 1964, William S. Reese and Jerry G. Brodsky agreed to form a corporation to be known as Cambell Square, Inc. for the principal purpose of developing and renting land. The corporation issued 400 shares of common stock at a par value...

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